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CHUY vs. CMG: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Retail - Restaurants sector might want to consider either Chuy's Holdings (CHUY - Free Report) or Chipotle Mexican Grill (CMG - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Chuy's Holdings is sporting a Zacks Rank of #1 (Strong Buy), while Chipotle Mexican Grill has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CHUY has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CHUY currently has a forward P/E ratio of 25.23, while CMG has a forward P/E of 60.95. We also note that CHUY has a PEG ratio of 1.44. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CMG currently has a PEG ratio of 3.30.
Another notable valuation metric for CHUY is its P/B ratio of 2.01. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CMG has a P/B of 14.69.
Based on these metrics and many more, CHUY holds a Value grade of B, while CMG has a Value grade of F.
CHUY stands above CMG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CHUY is the superior value option right now.
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CHUY vs. CMG: Which Stock Is the Better Value Option?
Investors looking for stocks in the Retail - Restaurants sector might want to consider either Chuy's Holdings (CHUY - Free Report) or Chipotle Mexican Grill (CMG - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Chuy's Holdings is sporting a Zacks Rank of #1 (Strong Buy), while Chipotle Mexican Grill has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CHUY has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CHUY currently has a forward P/E ratio of 25.23, while CMG has a forward P/E of 60.95. We also note that CHUY has a PEG ratio of 1.44. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CMG currently has a PEG ratio of 3.30.
Another notable valuation metric for CHUY is its P/B ratio of 2.01. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CMG has a P/B of 14.69.
Based on these metrics and many more, CHUY holds a Value grade of B, while CMG has a Value grade of F.
CHUY stands above CMG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CHUY is the superior value option right now.